CULLMAN, Ala. – A new state law regulating hemp-derived products has gone into effect across Alabama, leaving small business owners and consumers scrambling for answers about what comes next — and who is at risk.
House Bill 445, signed into law by Gov. Kay Ivey on May 14, redefines hemp-derived products, bans smokeable forms and gives sweeping enforcement authority to the Alabama Alcoholic Beverage Control (ABC) Board. The law went into effect July 1.
“This bill aims to ensure that products sold as hemp are safe and not designed to mimic illegal drugs,” Ivey said in a prepared statement. “I signed House Bill 445 because it strikes a balance between protecting consumers and supporting legitimate hemp businesses.”
But for many local businesses, the balance seems one-sided.
Cullman-based Wagon Trail Hemp Farms issued a statement this week in response to the new law, aiming to reassure customers while acknowledging the long-term challenges it brings.
“With the passage of HB445 into law we wanted to address any concerns that may arise. We are here to answer your questions if needed,” the company said in a Facebook post Tuesday morning.
Its assessment is that the immediate impact is minimal — for now.
“The July 1 deadline has little effect on us because we do not sell smokable flower, prerolls or raw goods,” the statement continued. “All of the products that we manufacture and sell are considered to be consumable hemp products under the new law. We will continue to sell products as we always have until Jan. 1, 2026.”
However, that date marks a turning point for in-state hemp commerce.
“The new packaging and labeling guidelines will go into place. After Jan. 1, our products will still be available, but all retailers will have to be licensed by the ABC, and all in-state online sales will be stopped,” the statement continued.
The company closed by thanking its supporters and promised continued updates.
“We will continue to keep everyone in the loop as we learn more about HB445. We love and thank you all for always supporting us!” concluded the company’s statement.
The law, now in full effect, does the following:
- Prohibits the sale of smokeable hemp products, including raw flower and prerolls
- Requires licensing through the ABC Board for all retailers selling consumable hemp products after Jan. 1, 2026
- Prohibits online sales of consumable hemp products within Alabama beginning Jan. 1, 2026
- Defines consumable hemp as products intended for ingestion or topical use that contain hemp-derived cannabinoids like Delta-8 and Delta-10 THC
- Creates new criminal penalties for possession of illegal hemp products, with enforcement overseen by the ABC Board
Hemp was legalized federally in 2018 and regulated in Alabama starting in 2019.
Since then, Alabama has collected tens of millions in hemp-related tax revenue, including a 10% excise tax.
The market boomed with the rise of hemp-derived cannabinoids like Delta-8, often used by consumers for relaxation or sleep support.
HB445 reverses much of that growth in a matter of months, triggering confusion and concern from retailers, consumers and advocates alike.
Some business owners have privately shared fears of raids or arrests based on product misunderstandings. Others question how ABC agents — traditionally alcohol regulators — will handle hemp enforcement.
By Jan. 1, 2026, every Alabama retailer must comply with ABC licensing, packaging guidelines and marketing restrictions. Out-of-state online sales into Alabama may continue, but in-state online sales will become illegal.
Legal challenges may follow, and other states are watching closely. For now, companies like Wagon Trail Hemp Farms say they’ll adapt, but they’re asking for clarity and fairness as they navigate a shifting legal terrain.
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